Correlation Between Megan Holdings and Toppoint Holdings

Can any of the company-specific risk be diversified away by investing in both Megan Holdings and Toppoint Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Megan Holdings and Toppoint Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Megan Holdings Limited and Toppoint Holdings, you can compare the effects of market volatilities on Megan Holdings and Toppoint Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Megan Holdings with a short position of Toppoint Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Megan Holdings and Toppoint Holdings.

Diversification Opportunities for Megan Holdings and Toppoint Holdings

0.17

Correlation Coefficient

Megan Holdings  Toppoint Holdings

Average diversification

The 3 months correlation between Megan and Toppoint is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Megan Holdings Limited and Toppoint Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toppoint Holdings and Megan Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Megan Holdings Limited are associated (or correlated) with Toppoint Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toppoint Holdings has no effect on the direction of Megan Holdings i.e., Megan Holdings and Toppoint Holdings go up and down completely randomly.

Pair Corralation between Megan Holdings and Toppoint Holdings

Considering the 90-day investment horizon Megan Holdings Limited is expected to under-perform the Toppoint Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Megan Holdings Limited is 1.12 times less risky than Toppoint Holdings. The stock trades about -0.12 of its potential returns per unit of risk. The Toppoint Holdings is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  202.00  in Toppoint Holdings on September 11, 2025 and sell it today you would lose (94.00) from holding Toppoint Holdings or give up 46.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	82.54%
Values	Daily Returns

Megan Holdings Limited  vs.  Toppoint Holdings

Megan Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Megan Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Toppoint Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Toppoint Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Megan Holdings and Toppoint Holdings

The main advantage of trading using opposite Megan Holdings and Toppoint Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Megan Holdings position performs unexpectedly, Toppoint Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Toppoint Holdings will offset losses from the drop in Toppoint Holdings' long position.

The idea behind Megan Holdings Limited and Toppoint Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.